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Limited Liability Company

An LLC is a business structure that combines the liability protection of a corporation with the tax flexibility of a partnership. It's the most popular choice for small to mid-size businesses.

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Tax Classification

Flexible (default partnership or corporation)

Ownership Structure

Member-owned (1 or more members)

Liability Protection

Yes

Complexity

Moderate

Key Benefits

Limited liability protection for owners (members)

Pass-through taxation (no double taxation)

Flexible profit distribution

Less formal compliance requirements than corporations

Can elect to be taxed as S-Corp for tax savings

Credibility and professional appearance

Requirements & Steps

1

File Articles of Organization with state

2

Obtain an EIN from the IRS

3

Create an Operating Agreement (recommended)

4

Register for state and local taxes

5

Obtain necessary business licenses and permits

6

Open a business bank account

Ideal For

Small to mid-size businesses, startups, freelancers with employees

Ready to Get Your EIN?

Start your Limited Liability Company application today and get your EIN in as little as 4 hours.